BMC allows re-development of 670 plots Latest News

BMC will let private parties re-develop 674 plots across the city which were given on tenancy decades ago. Due to the bad finances, the civic administration is all set to monetize its real estate.

Developers will have to pay 62.5 % of the land cost i.e ready reckoner rate for residential building construction and 125% for commercial constructions and can use the plot’s entire development potential for their profit. The civic body will be allowed to convert ‘tenancy plots’ to ‘lease-hold plots’ for 60 years, which will give virtual ownership to the leaseholder.

The policy was cleared by the BMC general body in the last March and the guidelines were introduced by the administration recently. The BMC has urged tenancy holders to avail of this benefit or it will cancel their tenancy rights and auction these plots.

The plots were empty when given on a tenancy basis since 1937, the corporation was charged a very nominal rent from the occupant, and zero development was allowed without the civic authority's permission.

According to the guidelines, the corporation will charge a one-time premium to the tenancy holder to hand over the plot to them on a 30-year lease, which will be further extended for another 30 years. The leaseholders will have all the development rights of the plot and can sue the available FSI of the plot and construct residential-commercial buildings on it for sale.

What officials have to say -

Ramesh Pawar, the Deputy municipal commissioner, said, “We are allowing utilization of construction potential of these plots after charging a one-time premium.”

“The new policy is a win-win situation for both. Most of these plots are in Island city,” said civic officials.

Architect and former president of Practicing Engineers, Architects and Town Planner Association, Shirish Sukhatme said, “BMC is virtually selling these plots by charging a huge one-time premium after giving all development rights to the leaseholder. It will be a win-win situation for both.

He also said that it will help in generating good revenue for the BMC but

instead of a one-time premium of the ready reckoner rate of the plot, the BMC should charge is based on the availability of balance FSI on the plot, as the developer needs to accommodate the existing tenants.